As an investment UK buy-to-let has seen the best returns in the 21st century, new research from Landlord Mortgages shows.
Investors who purchased a buy-to-let property with a deposit of 25,000 could expect to see a 39,309 profit (157%) over six years. This is significantly higher than the 415 (2%) achieved by those who invested in the FTSE 1004 over the same period.
Lee Grandin, managing director of Landlord Motgages says: While buy-to-let property requires a relatively large minimum investment, this research shows that you can make considerable gains on capital invested in this asset class. However, this asset class often requires more commitment from investors than other asset classes and should be seen as a business rather than simply an investment. In addition, this sector is not regulated by the FSA so potential landlords need to make sure they do their research thoroughly and understand the nature of the market.
Whilst buy-to-let has outperformed the other classes included in the survey, the old adage applies. By avoiding putting all your eggs in one basket you stand a much better chance of long term gain as you are not pinning your hopes on the development of one particular sector.”